Which Is the Equation for Operating Income

question 34

Multiple Choice

Which is the equation for operating income?

• A) (Price - Units sold) - (Unit variable cost * Units sold) - Fixed cost
• B) (Price * Units sold) + (Unit variable cost * Units sold) + Fixed cost
• C) (Price + Units sold) - (Unit variable cost + Units sold) - Fixed cost
• D) (Price * Units sold) + (Unit variable cost - Units sold) + Fixed cost
• E) (Price * Units sold) + (Unit variable cost * Units sold) - Fixed cost

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Definitions:

Testator

A person who writes a will.

Forgery

The fraudulent making or altering of a writing in a way that changes the legal rights and liabilities of another and with the intent to deceive or defraud.

Legal Document

A formal document that is legally enforceable or that can serve as evidence in a legal proceeding.

Intestate

The state of dying without a will.